Enphase Energy, Inc. ENPH recently launched its latest IQ8P and IQ8HC Microinverters in selected solar markets of the Caribbean. The IQ8P and IQ8HC Microinverters, which come with peak output alternating current (AC) power of 480 and 384 watts (W), respectively, have the ability to support higher-powered solar modules.
Significance of IQ8 Microinverters
The IQ8 Microinverter is Enphase Energy’s latest and most powerful microinverter available to date. As IQ8 operates at low-voltage AC power instead of high-voltage direct current (DC) power, these microinverters are safer to use. These are higher-powered, smart-grid compatible microinverters that can work with bigger-size residential and commercial PV modules and high-powered PV modules.
Enphase is providing a 25-year limited warranty on these IQ8 Microinverters that have been recently launched in the Caribbean countries.
Enphase's Global Expansion Spree
Factors like supportive government policies in favor of solar installations and the declining cost of solar panels, along with the rising adoption of clean power resources, have been boosting the global solar energy market. To this end, per a report from the Mordor Intelligence firm, the global solar energy market size in terms of the installed base is expected to witness a CAGR of 31.9% during the 2024-2029 period.
Such an impressive market projection offers solid growth opportunities for prominent solar players like Enphase Energy. Hence, the company has been strategically expanding its footprint in the global solar market, as evidenced by its latest launch in the Caribbean.
Earlier, in May 2024, ENPH launched its IQ8 Microinverters in Finland, and in April 2024, it introduced this product in France and Spain. In addition to bringing its microinverters to the solar market of varied nations, the company has also been making its other solar products available in the market to expand its footprint.
In July 2024, it launched its Solargraf software platform in the Netherlands. It also unveiled its IQ Battery 5P in France in July, in Canada in June and in Mexico in May 2024.
Such frequent product launches should significantly boost the shipment of Enphase’s products, thereby bolstering its revenue growth in the coming quarters.
Peers to Benefit
Other prominent solar players like Canadian Solar CSIQ, SolarEdge Technologies SEDG and Emeren Group SOL are also expanding their footprint to reap the benefits of the expanding global solar energy market.
In March 2024, Canadian Solar’s subsidiary Recurrent Energy declared the purchase of a solar photovoltaic portfolio with a capacity of more than 420 megawatt-peak (MWp) located in southern Spain. This acquisition enhanced CSIQ’s solar project pipeline in Spain, wherein the company is expected to have begun building more than 1 gigawatt of solar projects by the end of 2024.
Canadian Solar has a long-term (three to five years) earnings growth rate of 25%. The Zacks Consensus Estimate for its 2024 sales implies an improvement of 2.5% from the prior-year figure.
In July 2024, SolarEdge launched its high-power SolarEdge TerraMax Inverter and H1300 Power Optimizers in Italy and Germany in June. These launches should expand SEDG’s footprint in the European solar market.
SolarEdge’s long-term earnings growth rate is 2.4%.
In July 2024, Emeren announced the sale of a ready-to-build solar project portfolio of 42 MWp in Spain to CVE Espana. The company generates solid revenues through the building and selling of such solar projects across the globe. To this end, Emeren plans to monetize approximately 400-450 MW of solar projects in 2024.
The Zacks Consensus Estimate for SOL’s 2024 sales implies an improvement of 33.7% from the prior-year figure. The Zacks Consensus Estimate for its 2024 earnings of 29 cents per share implies a significant rise from the prior-year quarter’s reported figure of 2 cents.
Price Movement
In the past year, shares of Enphase Energy have decreased 22.2% compared with the industry’s decline of 37.2%.
Image Source: Zacks Investment Research
Zacks Rank
Enphase Energy currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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